Certified Tax Value Losses

Certified Tax Value Losses Under
O.R.C. 5727.84

Senate Bills 3 and 287 of the 123rd General
Assembly reduced the listing percentages on electric utility
and natural gas utility tangible personal property. These
changes take place in tax year 2001. The lower listing
percentages will result in large decreases in the taxable
value of the effected property. To prevent schools and other
local governments from seeing lower tax revenues from the
lower taxable values, the bills created a reimbursement
mechanism whereby the state will hold them harmless against
revenue declines.

The first step in calculating the tax losses from the
listing percentage changes is to determine the valuation
drops caused by the bills. These valuation drops, defined in
law as the "tax value loss," are to calculated and certified
to the Department of Education by January 1, 2002. The tax
value loss for electric property is defined as the difference
between actual value in tax year 1998 and what values in 1998
would have been had the apportionment and listing percentages
been the same in 1998 as they are in 2001. The tax value loss
for natural gas property is defined as the difference between
actual value in tax year 1999 and what values in 1999 would
have been had the listing percentages been the same in 1999
as they are in 2001.

Attached to this document are two tables, the tax value
losses by taxing district and by school district that have
been certified to the Department of Education. The taxing
district table identifies the school district, joint
vocational school district, municipality, township, and
special district that is associated with each taxing
district.

The tax value loss totals about $4.45 billion, $3.25 billion
for electric property and $1.2 billion for gas property. Any
tax revenue that would otherwise have been lost due to these
valuation changes will be fully reimbursed to schools and
local governments.

Please note: Most of our data is
available in one of three different formats.
Spreadsheets and downloadable data is offered in either Lotus
*wk1 and/or Microsoft *xls and can be used with most recent
Lotus SmartSuite or Microsoft Office 97 spreadsheet or
database applications. These files are ideal for use
when extracting and merging data. The Adobe *pdf files
provide a nice, clean, printed copy. Adobe Acrobat
Reader is the application required to view the *pdf
files and can be downloaded, if necessary, from adobe.com.
Thanks for your continued interest.